Apple Could Use NFC Technology For Mobile Payments

Apple may employ technology known as Near-Field Communication (NFC) in the next iterations of its iPad and iPhone, enabling consumers to use their mobile devices to make payments in stores and allowing Apple to cut the credit card processing fees it currently pays.

Bloomberg backed up its reporting of the rumor by noting that last year, Apple hired Benjamin Vigier, who worked on NFC technology at mobile-payment provider MFoundry, and it has applied for a patent on an NFC-enabled system.

Technology consultant Richard Crone told Bloomberg that Apple could also use data gathered by NFC to deliver personalized mobile ads through its iAd network, enabling it to increase ad rates.

Bloomberg cited another consultant who said that Apple is already working on an NFC-equipped payment terminal that it would heavily subsidize or give away to retailers, in order to speed up the adoption of the technology.